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View Full Version : Another Give away of critical US manufacturing



Gary E
04-28-2006, 08:06 AM
Bush Set to Approve Takeover of 9 Military Plants by Dubai
By JIM RUTENBERG and DAVID E. SANGER

http://www.nytimes.com/2006/04/28/washington/28dubai.html (http://www.nytimes.com/2006/04/28/washington/28dubai.html)
( Now Bush wants the Arabs to make the parts for our military! Bush just REALLY LIKES Muslims. )

WASHINGTON, April 27 President Bush is expected on Friday to announce his approval of a deal under which a Dubai-owned company would take control of nine plants in the United States that manufacture parts for American military vehicles and aircraft, say two administration officials familiar with the terms of the deal.

The officials, who were granted anonymity so they could speak freely about something the president had not yet announced, said that the final details had not yet been set and that Mr. Bush might put conditions on the transaction to keep military technology in the United States.

But his action is almost certain to attract scrutiny in Congress, because of the political furor that erupted over the administration's approval of a deal earlier this spring that would have given another Dubai-owned company, Dubai Ports World, leases to operate several American port terminals through its acquisition of a British company, the Peninsular and Oriental Steam Navigation Company.

Dubai Ports agreed to drop the port deal after it became clear that Republicans were abandoning Mr. Bush and opposing the takeover.

In this case, the plants in question are owned by Doncasters Group Ltd., a British company that is being purchased for $1.2 billion from the Royal Bank of Scotland Group by Dubai International Capital, which is owned by the United Arab Emirate government.

Because the plants make turbine blades for tanks and aircraft, the deal was reviewed by the Committee on Foreign Investment in the United States, which sent it on to Mr. Bush himself for a decision, a step used only when the potential security risks or political considerations are particularly acute.

Administration officials alerted Congress that the deal would go through the committee's review process in an effort to head off the kind of public debate that surrounded the ports deal.

Opponents of the ports transactions argued that the terrorists involved in the Sept. 11 attacks had filtered money through the United Arab Emirates, where Dubai is the major shipping center. Mr. Bush argued that blocking the deal would have sent the wrong message to a friendly Arab state. His support, however, was not enough to quell the political furor.

One official who was briefed on the Doncasters transaction said there would be provisions in the agreement protecting American military secrets. But it was unclear whether that would satisfy Congressional objections. With nine Doncasters plants in Georgia and Connecticut making parts for American military contractors, the prospect of a takeover by the Dubai company has already caused nervousness among some lawmakers.

Representative John Barrow, Democrat of Georgia, likened the Doncasters deal to "outsourcing" part of the nation's industrial-military complex.

But Representative Peter T. King, Republican of New York, the chairman of the House Committee on Homeland Security and one of the foremost critics of the ports deal, said on Thursday that he would not necessarily have a problem this time around, in large part because the White House had given the deal a thorough review.

"It's a significant improvement over what happened before," Mr. King said. "It's been much more thorough, much more detailed."

A senior Republican Congressional aide who was granted anonymity because he was not authorized to talk about the matter, said he did not believe the president's approval of the deal would cause quite the same stir as the ports deal.

New York Times Company

Garrett Lowell
04-28-2006, 09:02 AM
Other products manufactured by this currently British-owned/managed firm:

Superalloys
Airfoils for gas turbine applications
Structural Components
Casings
Rings
Exhausts and combustion components for gas turbine applications
Aerostructures and components for airframe applications
Turbocharger impellers and wheels for the automotive industry
A wide variety of 'high stress' components for F1 motor racing
Medical orthopaedic implants and instruments
Specialist petrochemical furnace tubing
Forged fan and compressor blades
Compressor casings
Combustion and turbine components
Investment cast turbine airfoils
Fabricated exhausts
Intake lip skin and erosion shields
Fabricated engine cover panels
Bleed air ducting
Forged and fabricated compressor and combustor casings
Rolled fan casings
Fabricated aerostructure panels and structures
Rolled and welded rings and seals for casings


Oh no. After this purchase, the "terrorists" will be able to sabotage amputees, F1 races, turbocharged cars, cars with wheels, and any aircraft or automotive engine (or tank engine) utilizing their turbine fans (GE, RR, P&W, Boeing, Kawasaki and Mitsubishi). Better roll out the fear machine and kill this deal quick (it's an election year, after all).

March march march.

ljb5
04-28-2006, 09:05 AM
I don't follow your logic, Garrett...

If Iran had the ability to produce nuclear weapons and gumdrops, do the gumdrops somehow make the nukes less of a threat?

Garrett Lowell
04-28-2006, 09:10 AM
No, the nukes are not less of a threat. But, if the nukes were manufactured in the US, under US law, with local US employees and management, then please tell me how that might change the situation.

ljb5
04-28-2006, 09:18 AM
No, the nukes are not less of a threat. But, if the nukes were manufactured in the US, under US law, with local US employees and management, then please tell me how that might change the situation.

If the other products don't matter, why did you mention them?

-------------------------------------------

Garrett Lowell
04-28-2006, 09:25 AM
Please answer my question.
(I posted the other products because the C&P'd article did not quite give all of the necessary information and I was being a bit facetious).

ljb5
04-28-2006, 09:54 AM
There are many ways that ownership can influence the success or failure of a company.

You know the old parable 'For want of a nail, the war was lost'?

What happens if we find ourselves at war with some group that Dubai doesn't officially support but has some behind-the-scenes relationship...

All of a sudden, our entire fleet of whatchamacallits can't get off the ground because they don't have replacement parts for the thingamajig because some bean-counter in accounts payable decided to defer payments on a maintanence contract for a whatzitcalled...

Or maybe a deal to license useful technology from one developer falls through because ownership balked at the terms of payment.... Now we've got gizmos flying around with sub-standard widgets.

Remember, wars aren't just fought with guns and bullets. They're fought with information and economics.

Dubai might be our friend now (not exactly), but five years ago, they were not --- and there are no guarantees about five years from now.

"We thought they were our friends at the time" will be a very poor excuse.

uncas
04-28-2006, 09:57 AM
I see Iran just bought some missle hardware from N Korea.

Gary E
04-28-2006, 09:57 AM
Garrett

You can name all the critical parts you want, but when the ARABS OWN them, YOU wont.

I plan to profit from this, you can too, short the dollar, its the AMERICAN way...after all Warren Buffet does it.

Garrett Lowell
04-28-2006, 10:17 AM
ljb5, good points. I wonder if there are any safeguards built in to prevent the scenario you laid out.
Gary E, I don't own them now, nor does any American. They are a British-owned company.

GregW
04-28-2006, 10:27 AM
Alcatel of France will be buying Lucent pretty soon. Lucent does lots of work for all branches of the USA military, as we as all various USA intelligence agencies. The famed Bell Laboratories will now be owned by a Paris based company.

Gary E
04-28-2006, 10:32 AM
Anothr reason to short the US buck

ljb5
04-28-2006, 10:36 AM
I wonder if there are any safeguards built in to prevent the scenario you laid out.

I'm sure there are safeguards.

Will they be enough? There's only one way to find out....

No system is perfect. No safeguard is absolute.

It's always better to have a reliable system that doesn't need safeguards rather than a dicey system with lots of safeguards.

Meerkat
04-28-2006, 01:52 PM
No, the nukes are not less of a threat. But, if the nukes were manufactured in the US, under US law, with local US employees and management, then please tell me how that might change the situation.
And then detonated in US cities? ;)

Meerkat
04-28-2006, 01:55 PM
Most computer and electronics components are made in The People's Republic of China. Think it would be a good idea to have an argument with them over, say, Taiwan or Nepal (a potential coming attraction)?

Osborne Russell
04-28-2006, 01:57 PM
This Dubai place is starting to look like Bugsy Siegel's vision of Las Vegas -- a place to do business with a government designed for the purpose.